Silver markets have choppy Monday to start the week
Silver markets pulled back initially during the trading session on Monday, reaching towards the $16.56 level. The market bounce from there and reached towards the $16.75 level above there. If we can break above that level, the market should then go to the $16.85 level. If we clear that level, then it’s time to start looking towards the $17 level. Ultimately, I do think that every time we pull back it is a buying opportunity and silver, but I would keep leverage out of the equation unless of course you have the proper sized account, perhaps allowing you to trade the futures market, which is a great market to trade this type of volatile action, but you are going to need to be very diligent with your stops.
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The $16.40 level underneath is massive support, and if we unwind below there, it’s likely the market should then go to the $16.25 level, and then possibly the $16 level after that. Ultimately, I think that the market participants will find a reason to send the market higher, as the situation in Syria could put a lot of money towards precious metals at the drop of headline, and of course I think that if the US dollar falls, that could also send silver higher. However, I don’t think that the market will be an easy one to trade with huge positions, so what I’ve been doing is buying physical silver and waiting to see the breakout above the $17 level. Ultimately, I anticipate that Silver will try to go towards the $20 level over the next several months.